Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the
third quarter of fiscal 2012.
Financial Highlights – Third quarter
ended October 27, 2012
Total sales in the third quarter ended October 27, 2012
increased 4.1% to $149.0 million compared with $143.1 million in
the third quarter ended October 29, 2011. Comparable store sales
increased 0.5%.
Net loss was $3.7 million, or $0.25 per diluted share, in the
third quarter of fiscal 2012, compared with a net loss of $6.8
million, or $0.46 per diluted share, in the third quarter of fiscal
2011. Last year’s third quarter was affected by severance costs of
$1.2 million, incurred primarily in connection with the elimination
of 40 positions in the Company’s corporate offices, distribution
centers and store organization. The severance expense had an
adverse impact on loss per diluted share of $0.05 in the third
quarter of fiscal 2011.
The Company opened one store and relocated or expanded two
others in the third quarter of 2012, reaching a total store count
of 513 at the end of the quarter.
Financial Highlights – First three
quarters ended October 27, 2012
Total sales in the first three quarters of fiscal 2012 increased
3.6% to $479.0 million compared with $462.5 million in the same
period of fiscal 2011. Comparable store sales decreased 3.1%. Net
loss was $1.5 million, or $0.10 per diluted share, in the first
three quarters of this year, compared with a net loss of $4.7
million, or $0.32 per diluted share, in last year’s first three
quarters.
Investor Conference Call and
Webcast
Citi Trends will host a conference call today at 9:00 a.m. ET.
The number to call for the live interactive teleconference is
(212) 231-2906. A replay of the conference call will be
available until November 27, 2012, by dialing (402) 977-9140
and entering the passcode, 21602893. The live broadcast of the
quarterly conference call will be available online at the Company’s
website, www.cititrends.com, as well as
http://ir.cititrends.com/events.cfm, beginning today at 9:00 a.m.
ET. The online replay will follow shortly after the call and
continue through November 27, 2012.
During the conference call, the Company may discuss and answer
questions concerning business and financial developments and trends
after quarter-end. The Company’s responses to questions, as well as
other matters discussed during the conference call, may contain or
constitute information that has not been disclosed previously.
The Company’s next scheduled press release is scheduled for
February 13, 2013 and will consist of a report on fourth quarter
sales results.
About Citi Trends
Citi Trends, Inc. is a value-priced retailer of urban fashion
apparel and accessories for the entire family. The Company operates
513 stores located in 29 states. Citi Trends’ website address is
www.cititrends.com. CTRN-E
Forward-Looking
Statements
All statements other than historical facts contained in this
news release, including statements regarding our future financial
results and position, business policy and plans and objectives of
management for future operations, are forward-looking statements
that are subject to material risks and uncertainties. The words
“believe,” “may,” “could,” “plans,” “estimate,” “continue,”
“anticipate,” “intend,” “expect” and similar expressions, as they
relate to Citi Trends, are intended to identify forward-looking
statements. Statements with respect to earnings guidance are
forward-looking statements. Investors are cautioned that any such
forward-looking statements are subject to the finalization of the
Company’s quarterly financial and accounting procedures, are not
guarantees of future performance or results and are inherently
subject to risks and uncertainties, some of which cannot be
predicted or quantified. Actual results or developments may differ
materially from those included in the forward-looking statements as
a result of various factors which are discussed in Citi Trends,
Inc. filings with the Securities and Exchange Commission. These
risks and uncertainties include, but are not limited to,
uncertainties relating to economic conditions, growth risks,
consumer spending patterns, competition within the industry,
competition in our markets and the ability to anticipate and
respond to fashion trends. Any forward-looking statements by the
Company, with respect to earnings guidance or otherwise, are
intended to speak only as of the date such statements are made.
Except as required by applicable law, including the securities laws
of the United States and the rules and regulations of the
Securities and Exchange Commission, Citi Trends does not undertake
to publicly update any forward-looking statements in this news
release or with respect to matters described herein, whether as a
result of any new information, future events or otherwise.
CITI TRENDS, INC. CONDENSED STATEMENTS OF
OPERATIONS (unaudited) (in thousands, except per share
data) Thirteen Weeks Ended
Thirteen Weeks Ended October 27, 2012
October 29, 2011 (unaudited) (unaudited) Net sales $ 148,985
$ 143,067 Cost of sales 97,808 94,909
Gross profit 51,177 48,158 Selling, general and administrative
expenses 51,132 53,059 Depreciation and amortization 5,970 6,454
Asset impairment 660 696 Loss from
operations (6,585 ) (12,051 ) Interest income 66 61 Interest
expense (50 ) (17 ) Loss before income tax benefit
(6,569 ) (12,007 ) Income tax benefit (2,869 ) (5,246
) Net loss $ (3,700 ) $ (6,761 ) Basic net loss per common
share $ (0.25 ) $ (0.46 ) Diluted net loss per common share $ (0.25
) $ (0.46 ) Weighted average shares used to compute
basic net loss per share 14,677 14,602
Weighted average shares used to compute diluted net loss per share
14,677 14,602
Thirty-Nine Weeks Ended Thirty-Nine Weeks
Ended October 27, 2012 October 29, 2011
(unaudited) (unaudited) Net sales $ 478,997 $ 462,468 Cost of sales
308,739 295,789 Gross profit 170,258
166,679 Selling, general and administrative expenses 154,733
154,819 Depreciation and amortization 18,153 18,389 Asset
impairment 660 2,305 Loss from
operations (3,288 ) (8,834 ) Interest income 194 180 Interest
expense (163 ) (27 ) Loss before income tax benefit
(3,257 ) (8,681 ) Income tax benefit (1,736 ) (3,982
) Net loss $ (1,521 ) $ (4,699 ) Basic net loss per common
share $ (0.10 ) $ (0.32 ) Diluted net loss per common share $ (0.10
) $ (0.32 ) Weighted average shares used to compute
basic net loss per share 14,662 14,584
Weighted average shares used to compute diluted net loss per share
14,662 14,584
CITI TRENDS, INC. CONDENSED BALANCE SHEETS
(unaudited) (in thousands) October 27,
2012 October 29, 2011 (unaudited) (unaudited) Assets:
Cash and cash equivalents $ 36,195 $ 33,225 Short-term investment
securities 4,734 - Inventory 146,700 127,156 Prepaid and other
current assets 20,023 27,836 Assets held for sale 1,415 1,415
Property and equipment, net 76,197 95,369 Long-term investment
securities 14,957 19,760 Other noncurrent assets 2,268
3,308 Total assets $ 302,489 $ 308,069
Liabilities and Stockholders’ Equity:
Accounts payable $ 67,098 $ 64,120 Accrued liabilities 25,691
25,126 Other current liabilities 2,544 3,363 Noncurrent liabilities
11,126 12,974 Total liabilities 106,459 105,583
Total stockholders’ equity
196,030 202,486
Total liabilities and stockholders’
equity
$ 302,489 $ 308,069
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